Learn how to spot trouble before you buy a home House hunting is exciting. It's easy to get caught up comparing floor plans and front yards—envisioning a new life in a new place. But house hunting is serious, too. Try these tips to spot telltale signs of trouble. Outside Before a house goes on the market, most sellers will catch up on home maintenance projects like cutting the lawn and painting the front door and trim, so you'll need to look past the curb appeal. Problems in any of these areas can cost thousands of dollars to repair or replace:
Check the roof for curled or missing shingles or multiple layers of roofing.
Are the gutters clean? Clogged gutters can cause leaks inside.
Inspect the siding or masonry for signs of wear.
Take a deep breath. Sewage or gas smells should set off your alarms.
Exterior features such as porches, driveways or grading that slope toward the home almost always mean water in the basement or beneath the home. This can lead to structural problems, mold and insect infestation. Inside Water damage is devastating to any structure. One freshly painted wall or an unusual rug placement or carpet patch could be an attempt to cover up water stains. Be sure to look for these signs of water problems, too:
Musty odors can mean a mold problem. At the very least, moisture is sneaking in where it shouldn't.
Foggy windows are a sign that the seals are allowing water vapor to seep in. Obviously, you want your home to be structurally sound as well. Watch for these clues:
Poor water pressure can be an indication of plumbing issues.
Are the sellers using lots of extension cords? The home's electrical system is probably outdated.
Doors that are hard to close, swing open by themselves, or don't open all the way could just be installed incorrectly. This could also be an indication of serious structural problems.
Large cracks in the walls or foundation are dead giveaways for settling issues. Everywhere Else
Anytime you aren't allowed to see a certain part of the house—be concerned. Any room or area you aren't allowed to see could be hiding some flaw.
Check out the neighborhood as well. If businesses are boarded up or there are lots of empty houses, think twice about moving in where so many seem to be moving out.
If you're getting a mortgage to buy your home, be wary of your lender. If you're not paying cash for your home, you should get a mortgage for 15 years or less, with 20% down and a payment that is no more than 25% of your take-home pay. Lots of lenders will say you can afford more, but stay conservative. Then your home will be a blessing rather than a curse. If you're ready to start house hunting, don't go it alone. Call Beccie @ 850-3062 (ariticle is from Dave Ramsey's web site)
Wednesday, March 31, 2010
Saturday, February 27, 2010
Tax Write-offs You Should Know About
The votes are in! The Equifax Facebook fans voted on what newsletter topic they wanted, and the winner was tax changes that could impact your 2009 return. So whether you're at home, on the job, in the classroom, on the road or making efforts to be more charitable or environmentally friendly, you could be eligible for tax write-offs you didn't even know about!
While April 14th is still a couple of months away, nothing takes the stress out of tax season like preparing in advance. Plus, by getting a head start, you can take the time to discover what tax credits, write-offs, and changes apply to your 2009 return — potentially helping you save! Discover new tax credits — as well as changes to existing ones — in this helpful article.
At Home:Incredibly popular in 2009, the first-time homebuyer tax credit allowed new, first-time homeowners who closed on their homes in 2009 to receive a credit of up to $8,000 on their 2009 return. To be eligible, you cannot have owned a residence in the United States in the previous three years. Plus, here's some great news for those of you still looking at homes: this credit has been extended into 2010. If you commit to purchase a home before April 30, 2010 and close before June 30, 2010, you can still receive this tax credit and elect to write it off on your 2009 or 2010 return.
A similar tax break for existing homeowners was established offering credits of up to $6,500 on 2009 returns for purchasing a replacement home in the same year. This was extended through the first half of 2010, so if you close on a replacement home by June 30, 2010, you can write off up to $6,500 on your 2009 or 2010 tax return. Income limits were also expanded for both of these credits; that means homebuyers who file as single or head-of-household can claim the credit in full if their modified Adjusted Gross Income (AGI) is less than $125,000 ($225,000 for those filing jointly).
On The Job:If your job offers a 401(k) plan, the maximum employee contribution level has increased in 2009 from $15,500 to $16,500. This also applies to similar retirement plans such as 403(b)s, the federal Thrift Savings Plan and more. If you are over 50, you can also contribute an additional $5,500 for a maximum of $22,000. These changes are slated to remain in place for your 2010 return as well.
For 2009, Congress has initiated a Payroll Tax Credit that credits workers 6.2% of their earned income with a cap of $400 for single filers and $800 for those filing jointly. Rather than receiving a rebate check, those eligible for the credit will receive it in advance through lower income tax withholding in their paychecks. This payroll tax credit will continue through 2010's return.
In The Classroom:Whether you or a loved one is attending college or is involved in educating, this year brings great write-offs in terms of the classroom. In terms of college tuition, the Hope credit is being replaced for 2009 by a new credit of up to $2,500 per student for each year of four academic years. It also covers the cost of textbooks. This credit begins to phase out for single filers with AGI over $80,000 and joint filers with AGI over $160,000. Similarly, 2009 brought the ability to tap 529 College Savings Plans tax-free in order to pay for a computer or Internet access. Be sure to keep this in mind in next year's return, as this credit will also be effective for your 2010 return.
If you are an educator, you should be aware of the Educators Deduction available only in 2009. For any classroom supplies purchased with their own funds, educators may deduct up to $250.
On The Road:If you purchased a new vehicle in 2009, you can add the sales tax you paid to your standard deduction — even if you don't claim sales taxes as itemized deductions. Eligible purchases include cars, motor homes, light trucks and motorcycles purchased after February 16, 2009 and before January 1, 2010. Only sales tax paid on the first $49,500 of the cost qualifies, and this credit phases out between $120,000-$130,000 AGI for single filers and $250,000-$260,000 for couples.
Going Green:Tax credits certainly favor efforts to make your home more energy efficient. You can receive a credit of up to 30% of the amount spent to make energy-efficient improvements to your home. There is a cap of $1,500 in a two-year period, and applies to qualified skylights, windows, outside doors, biomass fuel stoves, high-efficiency furnaces, water heaters and central air conditioners.
You can also receive a credit on up to 30% of the cost of installing energy-efficient property improvements such as solar water heating equipment, solar electric equipment, geothermal heat pumps or small wind turbines on your primary or secondary residence. This credit is unlimited but fuel cell property cannot extend beyond $500 per half-kilowatt capacity.
When You Give:2009 marks the last year that IRA owners aged 70½ and older can donate up to $100,000 of their IRAs to charity without having to report the withdrawal as income and subsequently deducting the donation as a charitable contribution. These deductions are not affected or limited by the Adjusted Gross Income cap on charitable contributions or the itemized deduction phaseout. When donating in this way, the amount counts toward the owner's required minimum distribution.
We hope our quick overview of important tax breaks and changes to your 2009 return was helpful, but remember that it's only a brief guide; please consult a tax or financial advisor to see if you qualify for these various tax credits.
While April 14th is still a couple of months away, nothing takes the stress out of tax season like preparing in advance. Plus, by getting a head start, you can take the time to discover what tax credits, write-offs, and changes apply to your 2009 return — potentially helping you save! Discover new tax credits — as well as changes to existing ones — in this helpful article.
At Home:Incredibly popular in 2009, the first-time homebuyer tax credit allowed new, first-time homeowners who closed on their homes in 2009 to receive a credit of up to $8,000 on their 2009 return. To be eligible, you cannot have owned a residence in the United States in the previous three years. Plus, here's some great news for those of you still looking at homes: this credit has been extended into 2010. If you commit to purchase a home before April 30, 2010 and close before June 30, 2010, you can still receive this tax credit and elect to write it off on your 2009 or 2010 return.
A similar tax break for existing homeowners was established offering credits of up to $6,500 on 2009 returns for purchasing a replacement home in the same year. This was extended through the first half of 2010, so if you close on a replacement home by June 30, 2010, you can write off up to $6,500 on your 2009 or 2010 tax return. Income limits were also expanded for both of these credits; that means homebuyers who file as single or head-of-household can claim the credit in full if their modified Adjusted Gross Income (AGI) is less than $125,000 ($225,000 for those filing jointly).
On The Job:If your job offers a 401(k) plan, the maximum employee contribution level has increased in 2009 from $15,500 to $16,500. This also applies to similar retirement plans such as 403(b)s, the federal Thrift Savings Plan and more. If you are over 50, you can also contribute an additional $5,500 for a maximum of $22,000. These changes are slated to remain in place for your 2010 return as well.
For 2009, Congress has initiated a Payroll Tax Credit that credits workers 6.2% of their earned income with a cap of $400 for single filers and $800 for those filing jointly. Rather than receiving a rebate check, those eligible for the credit will receive it in advance through lower income tax withholding in their paychecks. This payroll tax credit will continue through 2010's return.
In The Classroom:Whether you or a loved one is attending college or is involved in educating, this year brings great write-offs in terms of the classroom. In terms of college tuition, the Hope credit is being replaced for 2009 by a new credit of up to $2,500 per student for each year of four academic years. It also covers the cost of textbooks. This credit begins to phase out for single filers with AGI over $80,000 and joint filers with AGI over $160,000. Similarly, 2009 brought the ability to tap 529 College Savings Plans tax-free in order to pay for a computer or Internet access. Be sure to keep this in mind in next year's return, as this credit will also be effective for your 2010 return.
If you are an educator, you should be aware of the Educators Deduction available only in 2009. For any classroom supplies purchased with their own funds, educators may deduct up to $250.
On The Road:If you purchased a new vehicle in 2009, you can add the sales tax you paid to your standard deduction — even if you don't claim sales taxes as itemized deductions. Eligible purchases include cars, motor homes, light trucks and motorcycles purchased after February 16, 2009 and before January 1, 2010. Only sales tax paid on the first $49,500 of the cost qualifies, and this credit phases out between $120,000-$130,000 AGI for single filers and $250,000-$260,000 for couples.
Going Green:Tax credits certainly favor efforts to make your home more energy efficient. You can receive a credit of up to 30% of the amount spent to make energy-efficient improvements to your home. There is a cap of $1,500 in a two-year period, and applies to qualified skylights, windows, outside doors, biomass fuel stoves, high-efficiency furnaces, water heaters and central air conditioners.
You can also receive a credit on up to 30% of the cost of installing energy-efficient property improvements such as solar water heating equipment, solar electric equipment, geothermal heat pumps or small wind turbines on your primary or secondary residence. This credit is unlimited but fuel cell property cannot extend beyond $500 per half-kilowatt capacity.
When You Give:2009 marks the last year that IRA owners aged 70½ and older can donate up to $100,000 of their IRAs to charity without having to report the withdrawal as income and subsequently deducting the donation as a charitable contribution. These deductions are not affected or limited by the Adjusted Gross Income cap on charitable contributions or the itemized deduction phaseout. When donating in this way, the amount counts toward the owner's required minimum distribution.
We hope our quick overview of important tax breaks and changes to your 2009 return was helpful, but remember that it's only a brief guide; please consult a tax or financial advisor to see if you qualify for these various tax credits.
Thursday, November 5, 2009
Tax Credit Extension
Both Houses OK Tax Credit Extension, Expansion The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000. The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly. “REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.Compare the current tax credit with the newly passed version on REALTOR.org. More on the credit is available from NAR.
Tuesday, October 27, 2009
Chicken and Vegetable Pot Pie
Chicken and Vegetable Pot Pie
Maria Robledo
Serves 6 Hands-On Time: 35m Total Time: 1hr 10m
Ingredients
1 pound boneless, skinless chicken breasts
1 tablespoon olive oil
2 onions, chopped
4 carrots, diced
3 tablespoons all-purpose flour
1/2 cup dry white wine
2 cups 1 percent milk
1 10-ounce package frozen peas
1 tablespoon fresh thyme
kosher salt and black pepper
1 9-inch store-bought piecrust, thawed if frozen
Directions
Heat oven to 400° F. Cook the chicken in a pot of simmering water until cooked through, 10 to 12 minutes; let cool, then shred.
Meanwhile, heat the oil in a saucepan over medium heat. Add the onions and carrots and cook, stir-ring, until they begin to soften, 6 to 8 minutes (do not let them darken). Sprinkle the flour over the vegetables and cook, stirring, for 1 minute.
Add the wine and cook until evaporated, about 5 minutes. Add the milk and simmer until the sauce thickens, 2 to 3 minutes. Stir in the chicken, peas, thyme, 3/4 teaspoon salt, and 1/4 teaspoon pepper. Transfer to a shallow 1 1/2- to 2-quart baking dish.
Lay the crust on top, pressing to seal. Cut several vents in the crust. Place the pot pie on a baking sheet and bake until bubbling and the crust is golden, 30 to 35 minutes.
Maria Robledo
Serves 6 Hands-On Time: 35m Total Time: 1hr 10m
Ingredients
1 pound boneless, skinless chicken breasts
1 tablespoon olive oil
2 onions, chopped
4 carrots, diced
3 tablespoons all-purpose flour
1/2 cup dry white wine
2 cups 1 percent milk
1 10-ounce package frozen peas
1 tablespoon fresh thyme
kosher salt and black pepper
1 9-inch store-bought piecrust, thawed if frozen
Directions
Heat oven to 400° F. Cook the chicken in a pot of simmering water until cooked through, 10 to 12 minutes; let cool, then shred.
Meanwhile, heat the oil in a saucepan over medium heat. Add the onions and carrots and cook, stir-ring, until they begin to soften, 6 to 8 minutes (do not let them darken). Sprinkle the flour over the vegetables and cook, stirring, for 1 minute.
Add the wine and cook until evaporated, about 5 minutes. Add the milk and simmer until the sauce thickens, 2 to 3 minutes. Stir in the chicken, peas, thyme, 3/4 teaspoon salt, and 1/4 teaspoon pepper. Transfer to a shallow 1 1/2- to 2-quart baking dish.
Lay the crust on top, pressing to seal. Cut several vents in the crust. Place the pot pie on a baking sheet and bake until bubbling and the crust is golden, 30 to 35 minutes.
Tax Credit Extension
Tax Credit Extension Seems Likely It seems likely that the U.S. Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama on Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the cost of the extension. Spending any more money on the stimulus effort also could stir up a hornets' nest in some circles.
The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus, a Montana Democrat.
Source: Associated Press, Andrew Taylor (10/26/2009) and The Wall Street Journal, John D. McKinnon (10/27/2009)
The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus, a Montana Democrat.
Source: Associated Press, Andrew Taylor (10/26/2009) and The Wall Street Journal, John D. McKinnon (10/27/2009)
Tuesday, October 13, 2009
Infrared Heaters, Posted 10-13-2009
Brrrrr...., yup it is getting cold here in Kuna, Idaho. We have finished the harvest of the garden and have been grape juicing for the past three weeks. We are definitely good for the winter on grape juice. I still need to make applesauce.
So I have spent the last two weeks researching the infrared Heaters. Edenpur, Sunglow are a couple. It took me a week but I actually found two suppliers of the Sunglow here in our Valley. So I was actually able to test and touch. Only a $1.00 a day to operate, that I really liked. The one we finally ordered was from ebay and we are still waiting for it to get here. I am excitedly awaiting it arrival. Last year my highest heating bill was over $350. Ouch! Plus we had to fill the propane tank (gas fireplace) that was another $700. Big Ouch! So I am definitely on the hunt for more affordable heating. We have a newer electric heat pump, which works good but definitely costs alot to operate when it is cold. You can get the infrared heaters in different sizes. We are getting one that will heat a 1000 sq. ft. The supplier will also be getting the infrared heaters to use in fireplaces. I will be checking that one out as soon as it comes in at our local supplier. Thus we might be able to put a unit in the gas fireplace and the box heater out in the Shop. Just email me if you would like more of my personal information and experience with this type of heat source. Stay Warm!
Wednesday, May 20, 2009
Stimulus Funds Not Available for Down-Payments 5/20/2009
Stimulus Funds Not Available for Down-Payments
CONTENT UPDATE: According to HUD this program has been "suspended until further notice".
A new twist to the nation's economic stimulus program may make it easier to turn an $8,000 tax credit into a first-time home.
Under a decision announced last week, the U.S. Department of Housing and Urban Development (HUD) will allow eligible first-time homebuyers to use the tax credit authorized under The American Recovery and Reinvestment Act of 2009 during the actual home purchasing process. This will help to eliminate a major stumbling block for many homebuyers - coming up with the cash for a downpayment and closing costs.
As originally envisioned, the $8,000 credit would be available only after home buyers who purchase a home before next December 1 actually owned the home and filed their tax returns. They would then have to wait for the resulting refund. The credit could be claimed on either 2008 or the 2009 return but would still be available only retroactively.
The HUD policy change will permit FHA-approved lenders such as federal, state, and local government agencies and non-profit organizations to provide loans against the potential tax returns at closing to qualified buyers who are financing the purchase through FHA guaranteed first mortgages.
So far, Housing Finance Agencies and other development agencies in 10 states have announced programs under the new HUD guidelines and it is expected that many more will follow suit.
Each participant is free to structure its program but there are some general similarities. Most take the form of a second mortgage and a payoff is expected when the tax return is received. In Colorado, for example, the loan can be for an amount of up to 3.5 percent of the first mortgage loan or $6,000 (whichever is less) and will carry a 0% interest rate until June 30, 2010. There is a $350 administrative fee for issuing the loan, but if the loan is paid by the June 30 date $250 of the fee will be applied toward the payoff. After that date the interest rate will rise to 8% and the loan will amortize over eight years.
In Idaho the loan can be for as much as $7,000 if it does not push the indebtedness over 100 percent loan to value. To qualify the first-time buyer must have a FICO score of at least 640 and the debt ratio cannot exceed 45 percent. A loan from the Idaho program has a 3 percent interest rate.
A list of participating states and information on the program specifics in each state are available on the website for the National Council of State Housing Agencies at www.ncsha.org (click on "HFA First Time Homebuyer Tax Credit Loan Program.)
CONTENT UPDATE: According to HUD this program has been "suspended until further notice".
CONTENT UPDATE: According to HUD this program has been "suspended until further notice".
A new twist to the nation's economic stimulus program may make it easier to turn an $8,000 tax credit into a first-time home.
Under a decision announced last week, the U.S. Department of Housing and Urban Development (HUD) will allow eligible first-time homebuyers to use the tax credit authorized under The American Recovery and Reinvestment Act of 2009 during the actual home purchasing process. This will help to eliminate a major stumbling block for many homebuyers - coming up with the cash for a downpayment and closing costs.
As originally envisioned, the $8,000 credit would be available only after home buyers who purchase a home before next December 1 actually owned the home and filed their tax returns. They would then have to wait for the resulting refund. The credit could be claimed on either 2008 or the 2009 return but would still be available only retroactively.
The HUD policy change will permit FHA-approved lenders such as federal, state, and local government agencies and non-profit organizations to provide loans against the potential tax returns at closing to qualified buyers who are financing the purchase through FHA guaranteed first mortgages.
So far, Housing Finance Agencies and other development agencies in 10 states have announced programs under the new HUD guidelines and it is expected that many more will follow suit.
Each participant is free to structure its program but there are some general similarities. Most take the form of a second mortgage and a payoff is expected when the tax return is received. In Colorado, for example, the loan can be for an amount of up to 3.5 percent of the first mortgage loan or $6,000 (whichever is less) and will carry a 0% interest rate until June 30, 2010. There is a $350 administrative fee for issuing the loan, but if the loan is paid by the June 30 date $250 of the fee will be applied toward the payoff. After that date the interest rate will rise to 8% and the loan will amortize over eight years.
In Idaho the loan can be for as much as $7,000 if it does not push the indebtedness over 100 percent loan to value. To qualify the first-time buyer must have a FICO score of at least 640 and the debt ratio cannot exceed 45 percent. A loan from the Idaho program has a 3 percent interest rate.
A list of participating states and information on the program specifics in each state are available on the website for the National Council of State Housing Agencies at www.ncsha.org (click on "HFA First Time Homebuyer Tax Credit Loan Program.)
CONTENT UPDATE: According to HUD this program has been "suspended until further notice".
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